Lex localis - Journal of Local Self-Government_11(1)_January

L EX LOCALIS - J OURNAL OF L OCAL S ELF -G OVERNMENT Vol. 16, No. 3, pp. 591 - 612, July 2018 CEO Background and Company Performance – Evidence from the Cohesion Regions of Eastern and Western Slovenia R ENATA G ABRŠEK , M ARKO F ERJAN , I ZTOK P ODBREGAR , O LJA A RSENIJEVIĆ & P OLONA Š PRAJC 1 Abstract The purpose of the study was to determine whether or not a CEO’s background (i.e. age, field and level of education and length of tenure in top management positions) affects a company’s performance (in terms of net return on assets) and, if so, what, if any, are the differences between the two cohesion regions in Slovenia, i.e. Eastern and Western Slovenia. The sample included 109 managers that manage companies in all statistical regions and various areas of activity. The study failed to confirm a connection between a CEO’s background and company performance with regard to the Eastern and Western cohesion regions. However, we have been able to confirm that companies’ performance indicators in the Eastern cohesion region are significantly lower than those of companies in the Western cohesion region. The reason for this may be traced to the companies’ areas of activity and their differences between the regions, where one can claim that specific areas of activity constitute an industry in the individual region. Keywords: • cohesion regions • eastern and western Slovenia • CEO background • company performance • Slovenia C ORRESPONDENCE A DDRESS : Renata Gabršek, Ph.D. Student, Kapitalska družba d.d., Dunajska cesta 119, 1000 Ljubljana, Slovenia, email: renata.gabrsek@gmail.com . Marko Ferjan, Ph.D., Professor, University of Maribor, Faculty of Organizational Sciences, Kidriceva cesta 55a, 4000 Kranj, Slovenia, email: marko.ferjan@fov.uni-mb.si . Iztok Podbregar, Ph.D., Professor, University of Maribor, Faculty of Organizational Sciences, Kidriceva cesta 55a, 4000 Kranj, Slovenia, email: iztok.podbregar@fov.uni-mb.si. Olja Arsenijević, Ph.D., Associate Professor, University Nikola Tesla, Faculty for business studies and law, Starosajmište 29, 11000 Belgrade, Serbia, olja.arsenijevic@fpsp.edu.rs . Polona Šprajc, Ph.D., Associate Professor, University of Maribor, Faculty of Organizational Sciences, Kidriceva cesta 55a, 4000 Kranj, Slovenia, email: polona.sprajc@fov.uni-mb.si . https://doi.org/10.4335/16.3.591-612( 2018) ISSN 1581-5374 Print/1855-363X Online © 2018 Lex localis Available online at http://journal.lex-localis.press .